Farmers demand customised insurance for climate risks
SMALLHOLDER farmers have called on the insurance sector to develop customised products that address the unique needs of livestock and small-grain farmers.
These solutions are seen as crucial for expanding agricultural insurance coverage and providing relief to communities increasingly vulnerable to climate-related risks.
The 2023/24 drought, worsened by the El Niño phenomenon, has caused significant crop losses and livestock deaths, highlighting the susceptibility of the agricultural sector to climate change impacts.
Despite the availability of various insurance products, including Area Yield Index Insurance, Weather Index Insurance, and Hybrid Index Insurance, agricultural insurance uptake in Zimbabwe remains low — fluctuating at approximately three percent, according to the Insurance and Pensions Commission (Ipec).
During a provincial Climate Risk Agriculture Insurance sensitisation workshop held in Bulawayo recently, facilitated by the Ministry of Lands, Agriculture, Fisheries, Water, and Rural Development in collaboration with the Insurance Council of Zimbabwe (ICZ), Ipec, and AFC Insurance, smallholder farmers from Matabeleland North and South urged insurers to create region-specific products.
Farmers emphasised the need for insurance products that address the risks unique to their areas, such as pest outbreaks and livestock diseases, particularly in the face of escalating climate change effects.
“There is a need for insurers to prioritise products that consider the vulnerability of our livestock to climate-related challenges,” one farmer said.
Additionally, farmers highlighted the lack of knowledge and widespread misinformation about agricultural insurance, with many perceiving it as a service reserved for the elite. They called for awareness campaigns to be extended to village levels, using languages and formats accessible to local communities.
ICZ head of operations, Mr Nicholas Sayi, shared a roadmap for addressing low insurance uptake among smallholder farmers.
“To tackle this issue, we are focusing on product demonstrations at ward levels that are relevant to farmers engaged in livestock and small-grain production,” he said.
He also outlined plans for continuous engagement with district champions, trainers, farmers’ unions, and advisory partners to foster a better understanding and uptake of agricultural insurance.
Data from Ipec indicates a slight increase in agricultural insurance’s contribution to the Gross Premium Written, rising from 2,13 percent in the first quarter of 2020 to 3,35 percent in the same period in 2021. However, these figures remain disproportionately low for a country reliant on agriculture.
As climate change intensifies, exposing more agricultural assets to severe weather conditions, the demand for innovative insurance solutions becomes increasingly urgent.-chroncile
